org geo report

8/7/2019 Org Geo Report

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Organizational Geography andDecision Making

Jeremiah PacerPolitical Science Department

MA Public Administration

Rizal Technological University


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` An organization has to make strategic and operationaldecisions. Where and by whom should these decisions be

made? And: how should the organization structure beadapted? Centralization and Decentralization are twoopposite ways to transfer decision-making power and tochange the organizational structure of organizationsaccordingly.

Organizational Geography:Centralization and Decentralization


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` The process of transferring and assigning decision-making authorityto higher levels of an organizational hierarchy.

` In a centralized organization, the decision-making has been moved

to higher levels or tiers of the organization, such as a head office,or a corporate center.` Knowledge, information and ideas are concentrated at the top, and

decisions are cascaded down the organization.` The span of control of top managers is relatively broad, and there

are relatively many tiers in the organization.

Organizational Geography:Centralization


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` The process of transferring and assigning decision-making authority tolower levels of an organizational hierarchy.

` In a decentralized organization, the decision-making has been moved tolower levels or tiers of the organization, such as divisions, branches,departments or subsidiaries.

` Knowledge, information and ideas are flowing from the bottom to the topof the organization.

` The span of control of top managers is relatively small, and there arerelatively few tiers in the organization, because there is more autonomy inthe lower ranks.

Organizational Geography:Decentralization


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` Philosophy / emphasis on: top-down control, leadership, vision, strategy.` Decision-making: strong, authoritarian, visionary, charismatic` Organizational change: shaped by top, vision of leader.

` Execution: decisive, fast, coordinated. Able to respond quickly to majorissues and changes.` Uniformity. Low risk of dissent or conflicts between parts of the

organization.

Organizational Geography:Strengths of Centralization


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` Philosophy / emphasis on: bottom-up, political, cultural and learningdynamics.

` Decision-making: democratic, participative, detailed.` Organizational change: emerging from interactions, organizational

dynamics.` Execution: evolutionary, emergent. Flexible to adapt to m inor issues and

changes.` Participation, accountability. Low risk of not-invented-here behavior.

Organizational Geography:Strengths of Decentralization


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Centralized Command Decentralized Command

Sample Cases: Graph of OrganizationsCross Reference: Fayol


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` Each D ecision of any importance is the product of an intricateprocess of brokerage involving individuals inside and outside the

organization who feel some reason to be affected by the decision,or who have special knowledge to contribute to it.

D ecision Making:Scope and Reach


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` (1) Recognition of the problem;` (2) Collection of data;` (3) Classification and analysis of data;

` (4) Preparation of an inventory of means for realizing their objectives;` (5) Listing of alternative solutions;` (6) Evaluation of these alternatives;` (7) Making of the decision;` (8) Implementation; and` (9) Obtaining feedback on the results obtained with it.

D ecision Making:Progression of Steps in Decision Making


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Groupthink` Mode of thinking that people engage in when members strivings

for unanimity override their motivation to realistically appraisealternatives of action

D ecision Making:Groupthink


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S y m ptom s` (1) F eeling of invulnerability - the group must be right and will triumph;` (2) C ollective efforts to rationalize in order to discount warnings which lead

the members to reconsider their assumptions` (3) Complete faith in the groups inherent m orality;` (4) Stereotyped views of enem y leaders as evil, weak or stupid- and therefore

easily outwitted;

D ecision Making:Symptoms of Groupthink


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S y m ptom s` (5) D irect pressure on dissenters within the group for them to show the

proper loyalty;` (6) Self-censorship of deviationfrom the apparent group consensus- the

member swallows his or her doubts;` (7) Shared illusion of unanim ity concerning judgments conforming to the

majority views-everybody is presumed to be in agreement; and` (8) Emergence of self-appointed m indguards- members who protect the

group from adverse information that might shatter their sharedcomplacency.

D ecision Making:Symptoms of Groupthink


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` C ognitive Nearsightedness` Assum ption That F uture Will Repeat Past` Oversim plification

` Overreliance on Ones Own Experience` Preconceived Notions` Unwillingness to Experim ent` Reluctance to D ecide

D ecision Making:Common Errors in Decision Making


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Outside Decisions` If administrators are constantly making political decisions, abstract logic

cannot realistically be proposed as the model for all governmental decisionmaking. This simply means that decision-making procedures cannot be shaped

independently of the real world.

D ecision Making:Some Factors Influencing Decisions


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Sunk Costs` Previous investments of money, other resources and time- explain much of

the organizational inertia and conservatism. If substantial sums have alreadybeen invested in the program, administrators often stubbornly persist with it

despite the overwhelming evidence that the original decision was wrong andshould be changed. More is involved than the loss in money; long-establishedmodes of conduct have been built around the existing policy. Frequently, theofficial is convinced that a little more effort will produce the desired results.

D ecision Making:Some Factors Influencing Decisions


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MARAMING SALAMAT PO!

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